By
Steve Muchoki
May 9th, 2024
Binance has recently been moving out of certain European locations.
Top crypto exchange Binance has reportedly changed its plans concerning obtaining an operational license in Austria. According to a FinanceFWD report, Binance is no longer interested in its application with the Financial Market Authority of Austria, hence, the reason for its latest decision.
Speaking about the development, an exchange’s spokesperson says the decision is in the best interest of all concerned parties. And that includes Binance, its clients, regulators, and the entire crypto industry. The spokesperson says partly:
“We are unable to share details of our conversations with regulators, however, we remain committed to acting in compliance with our obligations wherever Binance operates.”
Going by the statement, it might be safe to say that Binance is hoping to avoid any sorts of complications that might make it step on the toes of any regulator. It also strives to fully prepare for the implementation of MiCA (Markets in Cryptoassets) in Europe, come 2024.
According to FinanceFWD, Binance set up its Austrian subsidiary in 2022 and had high hopes of obtaining a license. However, the regulatory burden made it change its plans. Sources familiar with the matter also claim that it has been a while since the exchange withdrew the said application.
Binance Continues to Exit Multiple European Markets
It might be worth mentioning that Binance has recently been moving out of certain European locations. In early June, it declared openly that it was exiting the Netherlands after failing to secure regulatory approval. So far, in the same month, the exchange has also withdrawn its Cyprus and UK registrations.
However, that is not to say that the company does not hold registrations in other EU countries. As of publication, Binance is licensed in Italy, Spain, and France. Although it is also reportedly being investigated for alleged money laundering in those places.
Meanwhile, Binance’s struggles know no bounds at the moment. The exchange is also mired in a legal battle with both the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). The two regulators are having a go at Binance and its founder Changpeng Zhao. They claim that Binance violated US securities laws and failed to register in the US.